Millicom (Tigo) Q1 2024 Earnings Release
Q1 benefited from large B2B contracts, favorable capex phasing, stronger FX and other tailwinds, yet Q1 results demonstrate the cash flow generation potential of the business, and strengthen our ability to achieve our 2024 Equity Free Cash Flow target of $550 million.
Millicom (Tigo) Q1 2024 Earnings Release
Luxembourg, May 8, 2024 – Millicom is pleased to announce its first quarter 2024 results. Please find below links to the Q1 2024 Earnings Release and IAS 34 Interim Condensed Consolidated Financial Statements.
Highlights*
- Revenue grew 8.6% driven by Service revenue up 8.8%, due to stronger currencies and organic growth of 3.8%, up from 3.2% in Q4 attributable to large B2B contracts in Panama and a return to positive growth in Guatemala.
- Operating profit increased 70.6%, reflecting the revenue increase and a 3.4% decline in operating expenses, while EBITDA grew 24.5% (20.0% organically) despite $30 million of restructuring costs incurred in the period.
- Colombia EBITDA rose 50.3% (24.2% organically) with a record EBITDA margin of 36.5% despite an $18 million restructuring charge. Excluding this one-off, Colombia's EBITDA margin was 41.4%.
- Operating cash flow rose 53.0% organically to $519 million, reflecting both the robust EBITDA growth and a 38.9% reduction in capex due mostly to slower phasing of investments in 2024 compared to 2023.
- Net income of $92 million in Q1 2024 was up strongly from $3 million in Q1 2023, reflecting the significant increase in operating profit.
- Leverage declined to 3.10x at the end of March 2024 from 3.29x at year-end 2023.
| Financial highlights ($ millions) | Q1 2024 | Q1 2023 | % change | Organic % Change |
| Revenue | 1,487 | 1,369 | 8.6% | 3.8% |
| Operating Profit | 324 | 190 | 70.6% | |
| Net Profit | 92 | 3 | NM | |
| Non-IFRS measures (*) | ||||
| Service Revenue | 1,376 | 1,264 | 8.8% | 3.8% |
| EBITDA | 632 | 507 | 24.5% | 20.0% |
| Capex | 113 | 185 | (38.9)% | |
| Operating Cash Flow | 519 | 322 | 61.0% | 53.0% |
| Equity Free Cash Flow | 1 | (133) | NM |
*See page 10 for a description of non-IFRS measures and for reconciliations to the nearest equivalent IFRS measures.
Millicom Chief Executive Officer Mauricio Ramos commented:
"I am very pleased to report that 2024 is off to a good start, as the combination of key investments and strategic initiatives implemented over the last several years, combined with savings from both phases of Project Everest, produced strong Q1 performance on many fronts:
- EBITDA grew 20% organically, with all countries up between 8% and 26%;
- OCF grew even faster, up 53% organically, as we optimized investment and benefited from favorable phasing;
- Colombia EBITDA margin hit a new record and is on track to generate positive and sustainable EFCF in 2024, after years of heavy investment;
- Guatemala returned to positive service revenue and EBITDA growth, aided by improved mobile pricing; and,
- Panama cemented its market leadership with record postpaid mobile net additions, as the third mobile operator ceased operations on April 20.
Q1 benefited from large B2B contracts, favorable capex phasing, stronger FX and other tailwinds, yet Q1 results demonstrate the cash flow generation potential of the business, and strengthen our ability to achieve our 2024 Equity Free Cash Flow target of $550 million.
As recently-communicated, Millicom's Board of Directors appointed Marcelo Benitez to succeed me as Millicom's next CEO. I will continue as Chair of the Board of Directors, subject to shareholder approval at the upcoming AGM. The entire Board and I look forward to working with Marcelo to ensure a smooth transition and continued success in his incredible journey with Millicom over the past 30 years."
• IAS 34 Interim Condensed Consolidated Financial Statements
Millicom is planning to host a video conference for the global financial community on May 8, 2024, at 14:00 (Stockholm) / 13:00 (London) / 08:00 (Miami).
Registration for the interactive event is required at the following link. After registering, you will receive a confirmation email containing details about joining the video conference. Participants who wish to ask a question during the live event must notify the Investor Relations team via email to [email protected] after the start of the event.
Participants may also join the conference in listen-only mode by dialing any of the following numbers and entering the Webinar ID: 822 3803 6738:
US: +1 929 205 6099 Sweden: +46 850 539 728
UK: +44 330 088 5830 Luxembourg: +352 342 080 9265
Additional international numbers are available at the following link. Accompanying slides and a replay of the event will be available on the Millicom investors website.
For further information, please contact:
| Press: Sofía Corral, Communications Director [email protected] |
Investors: Michel Morin, VP Investor Relations [email protected] |
About Millicom
Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of March 31, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,500 people and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.
Regulatory Statement
This information was prior to this release inside information and is information that Millicom is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on May 8, 2024.
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